Which spread betting brokers offer negative balance protection?
Verdict
- Pepperstone offers negative balance protection to UK retail spread bettors and is our pick: if the account falls below zero, it says it will return it to zero as soon as possible.
- Capital.com, IG, Spreadex and StoneX Trading also state retail negative balance protection; CMC Markets' policy wasn't confirmed in our research.
- Professional clients lose this protection at Pepperstone, and it doesn't cap losses at a stop level the way a guaranteed stop does.
Negative balance protection means a gap or fast move can wipe out your account but can't leave you owing the firm more. For UK retail spread bettors it is widely offered, so the real differences lie in who loses it and what sits alongside it. Here is who states it, how it differs from a guaranteed stop and FSCS cover, and the trade-off of professional status.
Pepperstone's protection for UK spread bettors
Pepperstone's UK costs page says: "If your account falls into a negative balance, we will return it to zero as soon as possible." That covers retail clients of Pepperstone Limited (FCA 684312), including the spread betting account. Pepperstone also states FSCS cover for eligible clients up to £85,000 and keeps client money segregated at top-tier banks.
Affiliate link — we may earn a commission at no extra cost to you.
Who states negative balance protection for UK clients
| Firm | Spread betting | Retail NBP | Guaranteed stops |
|---|---|---|---|
| Pepperstone | Yes | Yes | No |
| Capital.com | Yes | Yes, balance reset to zero | Yes |
| IG | Yes | Yes (UK and Europe) | Yes |
| Spreadex | Yes | Yes | Yes |
| StoneX Trading | Yes | Yes, not for professional clients | Yes |
| CMC Markets | Yes | Not confirmed in our research | Yes |
NBP, guaranteed stops and FSCS do different jobs
A careful spread bettor uses position size and stops to stay well away from a zero balance; NBP is the backstop, not the plan.
- Negative balance protection: your loss stops at your account balance. You can still lose all of it.
- Guaranteed stop-loss: your loss on one position stops at a price you chose, usually for a fee. Pepperstone doesn't offer one; the other firms in the table do.
- FSCS: covers eligible clients if the firm itself fails, up to £85,000 at Pepperstone. It doesn't cover trading losses.
When you lose the protection
Pepperstone's professional page tells applicants that negative balance protection won't apply to them. Professional status brings leverage up to 1:500 on FX, indices and gold, against 1:30 on major FX and 1:20 on major indices and gold for retail clients. You qualify by meeting two of three tests: frequent large trades, a portfolio over €500,000, or relevant financial-sector experience. StoneX Trading also excludes professional clients from NBP.
If you want NBP plus a guaranteed stop
Capital.com offers both on a UK spread betting account, with FCA authorisation (793714) and a 20 GBP minimum deposit. It is our second choice and the better fit if gap protection matters more to you than Pepperstone's platform range.
Affiliate link — we may earn a commission at no extra cost to you.
Sources
Protection terms as published by each firm.
Does negative balance protection apply to spread bets?
Yes at Pepperstone: it applies to retail accounts of Pepperstone Limited, which include spread betting.
Can I still lose my whole deposit with negative balance protection?
Yes. It stops the balance going below zero; it doesn't protect the money already in the account.
Do professional clients get negative balance protection?
Not at Pepperstone or StoneX Trading, according to their published terms.
Even with negative balance protection, leveraged spread bets and CFDs can wipe out your deposit quickly. Pepperstone states that 73.6% of retail investor accounts lose money with it on these products. Not investment advice; read each firm's terms before trading.